There are at least two different ways to assess Adobe's (Nasdaq:ADBE) performance over the past 16 years. In terms of execution of its business plan, Adobe has been a breakaway success - products like Photoshop and Acrobat dominate their niches to the point were "Photoshopping" and "PDFing" are verbs that almost everyone recognizes.
On the other hand, Adobe has not been such a runaway success as a stock. True, the stock is up about 400% over the past 16 years, but that is not all that impressive relative to Oracle (Nasdaq:ORCL) or Intuit (Nasdaq:INTU) and basically matches Microsoft's (Nasdaq:MSFT) performance - even though Adobe should have the advantage of being a more nimble company with more opportunities for growth.
The question for investors, then, is perhaps not so much whether Adobe can maintain its dominance and expand into new territories like smartphones and tablets, but whether investors will reward that growth.
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